Business
Expect gazette exempting SMEs, farmers, manufacturers from paying withholding tax soon – Presidency
Expect gazette exempting SMEs, farmers, manufacturers from paying withholding tax soon – Presidency
Newly approved withholding tax regulation exempting the Small and Medium Enterprises (SMEs), farmers and some manufacturers from paying withholding tax will be published in the official gazette in the coming days.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, disclosed this on Tuesday.
The new tax regime also includes a reduction of rates for businesses with low margins and measures to curb tax evasion.
Oyedele, in a post via X on Tuesday, said, “As part of the ongoing fiscal policy and tax reforms, a new withholding tax regime has been approved.
“The key changes introduced are to address the identified challenges and specifically include the exemption of small businesses from Withholding Tax compliance and reduced rates for businesses with low margins.
“Exemptions for manufacturers and producers such as farmers, measures to curb evasion and minimise tax avoidance.
“Ease of obtaining credit and utilisation of tax deducted at source, changes to reflect emerging issues and adopt global best practices and clarity on the timing of deduction and definition of key terms.”
Withholding tax (WHT) is an advance payment of income tax which may be used to offset or reduce tax liabilities, according to the Federal Inland Revenue Service (FIRS).
The WHT is deducted at varying rates ranging from five per cent to 10 per cent, depending on the transaction.
On June 3, Oyedele announced that the Federal Government had approved the exemption of small businesses earning N25 million and less from withholding tax.
Giving updates in a post on X on Tuesday, Oyedele said the approved regulation includes measures to curb evasion and minimise avoidance.
“Withholding tax was introduced into the Nigeria tax system in 1977 to serve as an advance payment of income tax on specified transactions,” he said.
“It was designed to provide the government with regular revenue flow and to serve as a means of curbing tax evasion.
“As the regime expanded over time to cover more transactions, various ambiguities and complications crept in.
“This resulted in many businesses, especially SMEs, being exposed to excessive burden of compliance and a strain on the working capital of low-margin businesses.”
Oyedele said some other unintended consequences included ambiguities regarding persons required to comply, eligible transactions, applicable rates, and timing of the obligation for remittance.
Business
NNPCL rolls out 12 new CNG stations in Lagos, Abuja
NNPCL rolls out 12 new CNG stations in Lagos, Abuja
The Nigerian National Petroleum Company Ltd (NNPCL), on Thursday commissioned 12 compressed natural gas (CNG) stations to reduce transportation cost in the country.
Tinubu had on May 29, last year announced the removal of subsidy on petrol, a development that made the price rise from N197 per liter to N690 per liter.
The newly built CNG stations, which had six in Lagos and six in Abuja, were commissioned by the Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo.
Together, the Abuja and Lagos stations have a combined dispensing capacity of over 6 million standard cubic feet (MMSCF) of CNG per day, serving approximately 15,000 vehicles daily.
The newly built CNG stations, which had six in Lagos and six in Abuja, were commissioned by the Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo.
READ ALSO:
- Reactions as Sanwo-Olu tells retirees not to gift churches, mosque their pensions
- Nigerian Railway Corporation suspends Warri-Itakpe train after derailment
- Again, gunmen attack Benue communities, kill 6, raze houses
Together, the Abuja and Lagos stations have a combined dispensing capacity of over 6 million standard cubic feet (MMSCF) of CNG per day, serving approximately 15,000 vehicles daily.
Also speaking at the occasion, the managing director, NNPC Retail Limited, Mr Huub Stokman, revealed that in the next one year, NNPC Retail would have launched over 100 CNG sites, including 16 NNPC gas marketing and NIPCO gas JV sites.
“CNG provides Nigeria with affordable alternatives to existing available fuel products. It will be about 40 per cent cheaper than petrol in Nigeria; and with continued investments, it will become a significant part of our energy mix,” Stokman added.
On his part, the chairman of the NNPC Board of Directors, Chief Pius Akinyelure, said increased CNG adoption would foster economic benefits by reducing fuel cost for consumers and businesses alike.
Under the presidential CNG initiative, NNPC and NIPCO gas entered into a strategic partnership for expansion of CNG stations across Nigeria. Under this partnership, 35 CNG stations are to be constructed across Nigeria.
These CNG stations feature advanced reciprocating and hydraulic booster compressors, ensuring a dispensing pressure of 200 bar for CNG vehicles.
The CNG is supplied to stations in Abuja and Lagos via virtual transportation from mother stations in Ajaokuta, Kogi State and lbafo in Ogun state.
NNPCL rolls out 12 new CNG stations in Lagos, Abuja
Railway
Nigerian Railway Corporation suspends Warri-Itakpe train after derailment
Nigerian Railway Corporation suspends Warri-Itakpe train after derailment
The Nigerian Railway Corporation (NRC) has announced the suspension of its train services from Warri in Delta State to Itakpe in Kogi State, starting from Friday, July 5th.
The suspension is due to an obstruction on the track, according to the NRC.
This is contained in a notice sent to customers titled “Public Announcement” on Friday, saying that the agency would likely resume operations on Monday, July 8, 2024.
READ ALSO:
- Again, gunmen attack Benue communities, kill 6, raze houses
- EFCC nabs 3 fraudsters impersonating popular cleric on social media
- Man, 67, offers two siblings N500 to defile them in Bauchi
It read, “This is to officially notify our esteemed passengers that Warri-Itakpe Train will not run today being Friday, 5th July 2024 due to the obstruction we have on our track.
“We shall resume our normal train services on Monday 8th July 2024. Passengers who already booked their tickets online will be refunded.”
“All inconveniences is highly regretted. Thank you,” the statement added.
The train reportedly derailed on Thursday, July 4 at about 7.15pm.
A passenger on the train said it wobbled along its track at several locations and derailed.
It was however learnt that the NRC team was working to fix the problem.
Nigerian Railway Corporation suspends Warri-Itakpe train after derailment
Business
NCAA suspends licences of 10 private jet operators
NCAA suspends licences of 10 private jet operators
The Nigeria Civil Aviation Authority (NCAA) has suspended the Permits for Non-Commercial Flights (PNCF) licenses of ten private jet operators for failing to comply with an earlier recertification directive aimed at curbing the misuse of private jets for commercial operations.
In a statement signed by Michael Achimugu, Director of Public Affairs and Consumer Protection, the NCAA explained that the operators did not adhere to the directive issued on April 16, 2024, requiring re-evaluation by April 19, 2024.
This directive was intended to ensure compliance with Part 18.3.4 of the Nigeria Civil Aviation Regulations 2023, which prohibits PNCF holders from using their aircraft for commercial operations or charter services.
“The Nigeria Civil Aviation Regulations 2023 Part 18.3.4 forbids holders of PNCF from using their aircraft for CARRIAGE OF PASSENGERS, CARGO or MAIL for HIRE or REWARD (commercial operation or charter services).
“As a result of flagrant disregard of this rule, the NCAA had earlier directed all holders of PNCF to undergo re-evaluation which should have been concluded by the 19th of April 2024.
READ ALSO:
- Court orders remand of Lagos school owner, two children over 10-year-old flogging
- Coastguards recover 89 bodies of migrants from sunk boat in Atlantic
- Kano: Bayero’s lawyers withdraw from emirate court case
“To this end, the NCAA has suspended the PERMIT FOR NON-COMMERCIAL FLIGHTS of ten private jet operators,” the statement read in part.
The ten suspended private jet operators whose PNCF licenses were suspended over failure to commence the recertification process include:
- Azikel Dredging Nigeria Ltd.
- Bli-Aviation Safety Services
- Ferry Aviation Developments Ltd.
- Matrix Energy Ltd.
- Marrietta Management Services Ltd.
- Worldwide Skypaths Services
- Mattini Airline Services Ltd.
- Aero Lead Ltd.
- Sky Bird Air Ltd
- Ezuma Jets Ltd.
The statement also informed the public that engaging PNCF holders for commercial purposes is illegal, and the NCAA will promptly take enforcement actions against any violators.
Additionally, NCAA officials have been deployed to General Aviation Terminals (GAT) and private wings of airports to monitor the activities of PNCF holders, the statement noted.
NCAA suspends licences of 10 private jet operators
-
Entertainment2 days agoIbadan politician Adeojo demands N58m from Wasiu Ayinde over breach of contract
-
metro2 days agoJUST-IN: Many feared dead as two-storey building collapses in Anambra market
-
metro3 days agoJAMB exposes 3,000 fake graduates
-
News3 days agoWe can’t pay minimum wage without increased allocation – Ekiti gov
-
metro3 days agoBandits kill Kaduna judge son, demand N300m to free father, other children
-
News13 hours agoFuel queues in Abuja, depots raise price to N710/litre
-
metro13 hours agoNigerian man, family duped me of $370,000 – American lady
-
metro2 days agoFirm, director sued for allegedly misappropriating N29.2m research fund